ROYAL GREENLAND ACHIEVES BEST EVER FINANCIAL RESULT
Royal Greenland achieves best ever financial result. With a profit from primary operations of DKK 326 million, in 2021 Royal Greenland achieved the best result in the company’s history. This is a clear improvement on recent years’ results – including those achieved before the Covid-19 pandemic.
The profit from primary operations before tax (i.e. profit before the sale of trawlers) was a record-high DKK 326 million, while revenue increased by 16% to DKK 5,638 million.
This clear progress was achieved even though 2021 was also affected by Covid-19 and the resulting general uncertainty among customers and consumers.
– Early in 2020, Royal Greenland A/S made an important decision to continue fishing, landing, producing and selling by and large as originally planned, despite the challenges of the pandemic. This decision ensured that the Group entered 2021 fully manned both offshore and on land, with current stocks and with continued strong relations with suppliers and customers all over the world, says Mikael Thinghuus, CEO of Royal Greenland.
The Group also came to serve as a buffer between reduced markets and a normal supply chain. This helped to ensure continued activity and employment in local communities.
“If we had significantly reduced our fisheries and production, this could have caused lasting damage to our access to resources and resulted in significant social and economic problems for the local communities in which we operate, says Mikael Thinghuus.
“A significant element of the improvement in results is related to fine markets for snow crab caught in North America, as well as shell-on prawns caught in Greenland. At the same time, the other core species such as cooked & peeled prawns, Greenland halibut and cod regained momentum during 2021, but are not yet at the same level as before the pandemic. “
In terms of market growth, North America in particular has shown growth, but Asia and Europe have also returned to the growth track.
In 2021, North Atlantic core activities accounted for 84% of revenue. This is precisely one of the ambitions driving Royal Greenland’s new North Atlantic Champion 4.0 strategy, which was adopted by the Board of Directors in 2021.
“The strategy is based on and applies the same mission and vision as we have pursued very successfully for the past ten years, and which focus on generating added value from our core species through commercial initiatives and operational excellence,” says Mikael Thinghuus.
The satisfactory result for 2021 should also be viewed in the light of the fact that, in December 2021, Royal Greenland was affected by a comprehensive cyber attack. This meant that all systems were shut down globally for a prolonged period.
“Thanks to the great efforts of employees across the Group, we nonetheless managed to deliver most sales orders and keep supply chains running, thereby minimising operational losses,” says Mikael Thinghuus.